Challenges and Potential of India's Lab-Grown Diamond Industry

The Indian lab-grown diamond industry is currently grappling with falling prices, diminishing consumer interest, and heavy competition from imports. To ensure the sector’s sustainability and growth, industry experts suggest regulatory measures, better certification practices, and investments in R&D. The government must act urgently to address these concerns.

The domestic lab-grown diamond industry in India is facing significant challenges such as falling prices, declining consumer interest, and stiff competition from imports, according to the Global Trade Research Initiative (GTRI).

GTRI notes that India's overproduction, combined with continued large-scale imports, has led to a 65% drop in prices over the past year, from Rs 60,000 to Rs 20,000 per carat. The organization calls for stringent government regulations to improve quality and certification standards, along with increased investment in R&D to reduce production costs and enhance diamond quality.

The industry is under financial strain due to plummeting prices and overcapacity, with many manufacturers struggling to repay loans for lab-grown diamond equipment. The sector's long-term sustainability will depend on addressing these issues through clear regulations and industry-standard practices, which could also restore consumer confidence.

(With inputs from agencies.)